MANAGING CONTRACTOR CONTRACT (MCC-1 2003)
CONTRACT MANUAL
VOLUME 4:FLOWCHARTS
[Last Amended:1 june 2011]
DISCLAIMER:
This Manual has been prepared solely for the purpose of providing internal guidance to Defence personnel. Any use by non-Defence personnel is unauthorised. No responsibility will be taken by the Commonwealth of Australia or the advisers assisting in the preparation of the Manual, for any such use, including any purported reliance on the guidance provided by the Manual. The Manual is not intended to be a substitute for legal advice, and unless expressly agreed in writing by the Commonwealth of Australia, nothing in the Manual will alter or affect the respective rights, obligations and liabilities of the parties under any contract.
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Department of Defence - Managing Contractor Contract (MCC-1 2003) Contract Manual - Volume 4
1.General information about the Manual
1.1General
The Department of Defence Managing Contractor Contract (MCC-1 2003) Contract Manual (Manual) comprises six volumes, being:
(a)Volume 1: Introduction to MCC-1 2003;
(b)Volume 2: Completing the Tender and Contract Documents;
(c)Volume 3: Clause-by-clause Guidance (for the Conditions of Contract);
(d)Volume 4: Flowcharts (for the Conditions of Contract);
(e)Volume 5: Proforma Notices (for the Conditions of Contract); and
(f)Volume 6: Clause-by-clause Guidance for the Special Conditions.
This Volume4 provides flowchartsto assist the parties in implementing some of the key processes under the Contract.
This Manual has been prepared solely for the purpose of providing internal guidance to Defence personnel. Any use by non-Defence personnel is unauthorised. No responsibility will be taken by the Commonwealth of Australia or the advisers assisting in the preparation of the Manual, for any such use, including any purported reliance on the guidance provided by the Manual. The Manual is not intended to be a substitute for legal advice, and unless expressly agreed in writing by the Commonwealth of Australia, nothing in the Manual will alter or affect the respective rights, obligations and liabilities of the parties under any contract.
The Manual is structured as an on-line reference tool located on the Defence Infrastructure Management website (see A printable version of each volume of the Manual is also available on the Defence Infrastructure Management website. However, it is anticipated that the Manual will be updated and supplemented from time to time. For this reason, if personnel have printed a version of the Manual, they should refer regularly to the Defence Infrastructure Management website to ensure that they are referring to the latest release. The release reference is printed on the front page of each volume of the Manual. Personnel should also be aware that legal and policy changes will impact on the content of this Manual from time to time. Personnel are responsible for ensuring that they understand how such changes may impact on their project.
The Contract identifies defined terms (generally, these are defined in clause 1.1 of the Conditions of Contract) by using a capital letter – eg "Completion", "Commonwealth Risks" etc. The Manual follows this convention.
1.2No substitute for reading the Contract
The Manual does not attempt to discuss all aspects of tender and contract administration in detail, so it is no substitute for reading the Contract and – if necessary – obtaining policy, legal or other specialist guidance.
Further, the Manual does not provide detailed advice in relation to matters not expected to arise in the day-to-day administration of the Contract, such as termination of the Contract or dealing with disputes. The need to seek specialist advice in extraordinary circumstances such as these is flagged throughout the Manual. If such circumstances arise, Defence and the Contract Administrator will need to seek specialist advice. If in doubt, contact the Directorate of Construction Contracts.
2.background to flowcharts
The flowcharts contained in this Volume 4 provide diagrammatical explanations for various processes which may need to be implemented under MCC-1 2003. They may assist Defencein evaluating the stages and steps within those processes and to understand what options Defence has and what actions should be taken upon notification of certain matters and events.
These flowcharts are intended to be used for preliminary guidance only. Defence personnel are reminded that they must carefully assess their obligations as stated in the Contract (with reference to Volume 3 and - where necessary - independent legal advice) when action is required under the Contract.
3.index to FLOWCHARTS
Set out below is an index to the flowcharts contained in this Volume. The flowcharts appear in the order set out in this index.
FlowchartNumber / Title of Flowchart1. / Submission/Review of Cost Plan, Programs and Planning Phase Design Documentation
2. / Fee Negotiation
3. / Achieving Planning Phase Agreement
4. / Achieving Planning Phase Approval
5. / Delivery Phase Design Documentation
6. / Subcontracting Reimbursable Work
7. / Defects
8. / Variations
9. / Payment
10. / Completion
11. / Disputes
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